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Rob Shaw: NDP defends BC Hydro rate hikes while sidelining regulator

The NDP once blasted the Liberals for overruling regulators鈥攏ow they鈥檙e doing the same
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Energy Minister Adrian Dix insists rate hikes are necessary, citing major capital projects and inflation. | DARREN STONE, TIMES COLONIST

The B.C. government’s communications shop tried to frame the province’s new electricity rate increases as “in response to the economic and trade uncertainty” caused by the United States. But, to his credit, Energy Minister Adrian Dix didn’t bother burning off any of his credibility pushing that weak argument on Monday.

No, U.S. President Donald Trump did not force BC Hydro to raise its rates 3.5 per cent April 1, with another 3.5 per cent the following year.

The rate hikes were made necessary by Hydro’s $36-billion capital plan, the $16-billion Site C dam coming online, an ambitious plan to expand electrification to the northwest, inflation, and other major Hydro initiatives.

“BC Hydro has a lot to do right now,” said Dix.

“They've got to drive a very large capital investment and serve customers, and we think this is the right approach. It provides clarity, stability in the system. It lets everyone know what the rates are. And that's why I'm here to announce them personally today.”

The threat of Trump’s tariffs did, however, give Dix the cover necessary for the NDP government to once again strong-arm the independent B.C. Utilities Commission out of the way on reviewing Hydro’s finances. For all the complaining the NDP did in opposition about such manoeuvres by the Liberal government, New Democrat ministers have proven just as enthusiastic at pushing around the watchdog as those they once criticized.

Cabinet issued a directive Monday to force the utilities commission to approve the politically set rates.

“We’re going to direct it because we want to have stability,” Dix told me. “We don’t have 12 or 18 months of hearings.”

He said it’s “the right call for these circumstances” of uncertainty involving U.S. tariffs to lock in rates and provide that certainty.

“We’ve got to be clear about where we’re going right now and straight about it,” said Dix.

The increase comes after a 2.7 per cent increase to Hydro last year, and a 1.4 per cent rate decrease the year before. And it contradicts an election platform in which the NDP government promised to “keep your Hydro rates low.”

Dix argued Monday that “low” is relative, and that the new increases are still below the cumulative rate of inflation, below the price increases of FortisBC for natural gas, and among the lowest of their kind in Canada.

“We do have to build for the future, and that means we have to get BC Hydro the resources to build for the future,” said Dix.

“We've got to obviously pay for costs. We've got to continue to be amongst the lowest in terms of overall cost, but we've got to, it seems to me, invest and ensure that we're providing BC Hydro with the resources it needs to do this.”

Still, the rate increases are a bitter blow to British Columbians looking for more affordability, not less, from their provincial government.

Premier David Eby has been touting the affordability benefits of eliminating the consumer carbon tax this week — though it’s now clear that will come at the expense of the $504 per year climate action tax credit for low-income British Columbians.

As government takes away that financial relief on the one hand, it will be sticking the same people with a $45-a-year increase to their electricity bill with the other.

Not exactly a welcome hit to the household finances. Perhaps why the NDP government would prefer to try and blame it on Trump.

Rob Shaw has spent more than 17 years covering B.C. politics, now reporting for CHEK News and writing for Glacier Media. He is the co-author of the national bestselling book A Matter of Confidence, host of the weekly podcast Political Capital, and a regular guest on CBC Radio.

[email protected]

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